CARM (the Canada Border Services Agency‘s Assessment and Revenue Management initiative) comes into effect this May. The clock is ticking – and now it’s crunch time for registration.
“There’s really only 42 days left for businesses to register for CARM, and for importers to delegate authority,” said Einar Rice at A & A Contract Customs Brokers. “Importers who haven’t registered need to act quickly.”
A little refresher: CARM was designed to relieve the ‘paper burden’ from importers and brokers and requires importers to deal directly with the CBSA on financial matters. CARM’s first release (back in 2021) launched its self-serve CARM Client Portal (CCP) which facilitates accounting and revenue management processes with the CBSA. CARM’s second release will include several notable differences, including a change to the Release Prior to Payment (RPP) program. When implemented, importers will be required to post their own minimum bond (rather than rely on their customs broker’s) to clear shipments and have goods released before accounting, tax, and duty payment. Non-resident importers (NRIs) are required to register for the CCP (and have an active account) to ensure their imports are handled efficiently; NRIs and suppliers who don’t have an active CCP account (and a customs broker delegated to act on their behalf) before CARM’s Release 2 will have difficulty clearing their goods through Canadian customs.
Release 2 is scheduled for May 13; however, the CBSA has announced a blackout period from April 26 to May 13, when certain legacy systems will shut down and CARM account visibility, accounting privileges, and registration will be unavailable for users. Documentation will need to be submitted through the CCP – and registrations completed – before the blackout begins.
While this means there’s less time than previously thought for registration, there is some good news: Importers registered in the portal before the May 13 release will be able to take advantage of a 180-day RPP transition period, giving them more time to “obtain the type of financial security they will need to have their goods released prior to the payment … of duties and taxes.” Importers who register after May 13 will be ineligible for the benefits of the 180-day transition.
If you have not already done so, contact your customs broker to discuss your registration status – and follow our blog for future updates.
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